First Merchants Corporation · NASDAQ:FRME
First Merchants — Q3 2026 Earnings Presentation
34 slides from First Merchants's earnings presentation, 2026
Slide 1: Investor Update Third Quarter 2026
Investor Update Third Quarter 2026
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue
Slide 3: Executive Management Team
Executive Management Team Mark Hardwick FMB: Chief Executive Officer 29 Yrs Mark K. Hardwick currently serves as the Chief Executive Officer of First Merchants Corporation and First Merchants Bank. Mark joined First Merchants in November of 1997 as Corporate Controller and was promoted to Chief Fina
Slide 4: First Merchants Corporation (NASDAQ: FRME)
First Merchants Corporation (NASDAQ: FRME) Largest financial services holding company headquartered in Central Indiana Financial Highlights as of 9/30/20261 Reported Adjusted3 $21.1 Billion YTD ROAA 0.90% 1.14% Total Assets YTD Return on TCE3 10.43% 13.24% $15.6 Billion TCE/TA3 8.83% Total Loans Mar
Slide 5: Third Quarter Highlights
Third Quarter Highlights Net Income & EPS1 ROA ROE & ROTCE (Annualized) (Annualized) $67.8 Million 1.30% ROA 10.07% ROE $1.09 Per Share 1.59% Adjusted PTPP ROA2 15.09% ROTCE2 ▪ Reported EPS of $1.09 compared to $0.98 in 3Q25 ▪ Strong adjusted PTPP earnings of $83.7 million, with adjusted PTPP ROA of
Slide 6: Year to Date Highlights
Year to Date Highlights Reported Net Income & EPS1 Reported ROA Reported ROE & ROTCE (Annualized) (Annualized) $139.0 Million 0.90% ROA 6.91% ROE $2.24 Per Share 1.57% Adjusted PTPP ROA2 10.43% ROTCE2 Adjusted Net Income & EPS1,2 Adjusted ROA2 Adjusted ROE & ROTCE2 (Annualized) (Annualized) $178.0 M
Slide 7: Business Strategy
Business Strategy Our strategy is to build on our Midwestern strength – grow organically through more and deeper relationships enhanced through smarter use of technology and customer-centric products. Commercial Banking Consumer Banking Strategy: We deliver flexible solutions through a high-touch, S
Slide 8: Business Highlights - Loans
Business Highlights - Loans Michigan Monroe MSA Rank: 1 Loan Growth Summary1,2 Detroit MSA Rank: 11 3Q26 Balance ($B) Growth Deposits: $2.5B Northwest Indiana Loans: $2.9B Commercial 11.9 -0.5% Lake County Rank: 4 Consumer 3.7 9.5% Lafayette MSA Rank: 2 Deposits: $3.0B Total Loan Growth QTD 1.8% Loa
Slide 9: Business Highlights - Deposits
Business Highlights - Deposits Michigan Monroe MSA Rank: 1 Detroit MSA Rank: 11 Deposit Growth Summary1 Deposits: $2.5B 3Q26 Balance ($B) Growth Northwest Indiana Loans: $2.9B Lake County Rank: 4 Commercial 8.2 -23.9% Lafayette MSA Rank: 2 Deposits: $3.0B Consumer 7.0 32.2% Loans: $2.2B Total Deposi
Slide 10: Third Quarter Financial Results
Third Quarter Financial Results ($M except per share data) For the Three Months Ended, Variance % Variance Linked Linked QTR- 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 Quarter Annualized Balance Sheet & Asset Quality 3Q26 Highlights 1. Total Assets $18,811.6 $19,025.1 $21,072.5 $21,348.8 $21,056.7 ($
Slide 11: Year to Date Financial Results
Year to Date Financial Results ($M except per share data) For the Nine Months Ended September 30, Variance % Variance 2024 2025 2026 YOY YOY Balance Sheet & Asset Quality Year to Date Highlights 1. Total Assets $18,347.6 $18,811.6 $21,056.7 $2,245.1 11.9% 2. Total Loans 12,687.5 13,614.4 15,601.0 1,
Slide 12: Investment Portfolio Highlights
Investment Portfolio Highlights 3Q26 Investment Portfolio Composition Yield on Investments (%) / Total Investments ($B) Corporate Obligations U.S. Agencies 2% 11% Collateralized 2.67% 2.66% 2.63% 2.63% 2.66% Mortgage Obligations 5% $3.1B Municipal $3.4 $3.4 $3.3 $3.3 $3.1 Mortgage- Backed Total Bond
Slide 13: Loan Portfolio Highlights
Loan Portfolio Highlights 3Q26 Loan Composition Highlights Construction Land & Land Development 6.2% Agricultural Land & Production 2.2% Commercial Real Estate ▪ Portfolio composition is ~76% Commercial oriented Non-Owner Occupied Public Finance/Other 20.6% Commercial 8.7% ▪ Total loan yield of 6.23
Slide 14: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans 3Q26 Allowance for Credit Losses – Loans ($M) Highlights ▪ $3.3 million Q3 Provision ▪ The reserve for unfunded commitments totals 1.56% 1.43% 1.42% 1.39% 1.38% $18.5 million and is recorded in Other Liabilities $194.5 $195.6 $212.5 $241.6 $215.5 3Q25 4Q25 1Q26 2Q
Slide 15: Deposit Portfolio Highlights
Deposit Portfolio Highlights 3Q26 Deposit Composition Highlights Certificates & Time ▪ Strong core deposit base Brokered Certificates of Deposit 1 Deposits < $100k 3% • 91% core deposits2 4% Certificates & Time • 22% noninterest bearing Deposits > $100k 7% ▪ Insured 68.3% / Uninsured 31.7% $16.9B De
Slide 16: Net Interest Margin
Net Interest Margin 3Q25 4Q25 1Q26 2Q26 3Q26 1. Net Interest Income - FTE1 ($millions) $ 139.9 $ 145.3 $ 157.7 $ 165.3 $ 167.3 2. Fair Value Accretion $ 0.9 $ 1.0 $ 2.8 $ 3.7 $ 4.0 3. Adjusted Net Interest Income - FTE1,2 $ 139.0 $ 144.3 $ 154.9 $ 161.6 $ 163.3 4. Tax Equivalent Yield on Earning Ass
Slide 17: Noninterest Income Highlights
Noninterest Income Highlights 3Q26 Noninterest Income Detail ($M) Noninterest Income Trends1 Fee Income / Revenue Service Charges $9.8 18.9% 19.1% 18.4% 18.4% 18.5% 26% Card Payment Fees $5.6 1Excludes $29.8 million net loss on mortgage loans reclassified to held for sale in 1Q26 Gain on Sale of Loa
Slide 18: Noninterest Expense Highlights
Noninterest Expense Highlights 3Q26 Noninterest Expense Detail Noninterest Expense Trends ($M) Efficiency Ratio 74.45% Net Occupancy & Equipment Outside Data Processing $16.9 $7.9 55.09% 55.11% 54.65%1 54.55% 15% 7% Professional & Other Outside Services $4.7 54.56%1 54.52% 54.21%1 4% 53.22%1 54.13%1
Slide 19: Capital Ratios
Capital Ratios Tangible Common Equity Ratio1 Highlights 9.18% 9.38% 9.00% 8.99% 8.83% ▪ Repurchased 287,431 shares totaling $12.0 million during the quarter 9.57% ▪ Repurchased 1,264,062 shares totaling $50.3 million 9.31% year 9.31%to date 9.65% ▪ Completed $100 million subordinated debt issuance 9
Slide 20: Loan Portfolio Insights
Loan Portfolio Insights Commercial C&I CRE CRE & Construction to Total Loans: Retail, 6.3% Multi-Family, 4.4% Industrial, 3.2% Warehouse, 2.0% $15.6B Office, 1.5% C&I includes commercial and Total Loans Other, 3.2% industrial, sponsor and owner- occupied real estate loans Construction, 6.2% ▪ Line u
Slide 21: Asset Quality
Asset Quality Asset Quality Trends ($M) 3Q26 Highlights 3Q25 4Q25 1Q26 2Q26 3Q26 Asset Quality: 1. Non-Accrual Loans $ 65.7 $ 71.8 $ 89.6 $ 118.2 $ 117.4 ▪ Largest new Non-accruals: 2. Other Real Estate 1.3 0.7 1.3 1.6 1.6 • Parts Distributor1 $18.4 million 3. 90PD Loans 1.9 2.0 4.0 9.7 12.7 • Digit
Slide 22: Nonperforming Assets
Nonperforming Assets Nonperforming Assets Roll Forward ($M) 3Q26 Highlights 3Q25 4Q25 1Q26 2Q26 3Q26 Nonperforming Migration: 1. Beginning Balance NPAs + 90PD $ 72.0 $ 68.9 $ 74.5 $ 94.9 $ 129.5 • Net nonperforming asset migration Non-Accrual was flat 2. Add: New Non-Accruals 15.5 22.8 46.1 53.6 41.
Slide 23: Track Record of Shareholder Value
Track Record of Shareholder Value Tangible Book Value per Share1 Diluted Earnings per Share1 CAGR 2015-2025: 7.5% $32.49 $32.55 CAGR 2015-2025: 8.5% Adjusted CAGR1 8.5% $30.02 $27.98 $25.42 $24.09 $3.81 $3.81 $3.73 $3.88 $22.64 $21.24 $3.41 $19.24 $3.22 $3.19 $2.873 $15.83 $16.78 $2.74 $14.38 $1.98
Slide 24: History of Organic and Whole Bank Acquisition Growth
History of Organic and Whole Bank Acquisition Growth Total Assets ($B) Growth Through Acquisition ✓ Experienced Acquirer ✓ Expanded in Current High-Growth Markets ✓ Added to Franchise with Stable Deposit Gathering $21.1 Markets $19.0 $17.9 $18.3 $18.3 $15.5 $14.1 $12.5 $9.9 $9.4 $6.8 $7.2 2015 2016
Slide 25: Vision for the Future
Vision for the Future Vision: To enhance the financial wellness of the diverse communities we serve. To be the most attentive, knowledgeable, and high-performing bank for our clients, Mission: teammates, and shareholders. Our strategy is to build on our Midwestern strength—growing organically throug
Slide 26: Appendix
APPENDIX io First Merchants,
Slide 27: Loan Portfolio
Loan Portfolio Loan Portfolio Trends ($M) Year End Trends 3Q25 4Q25 1Q26 2Q26 3Q26 2023 2024 2025 1. C&I - Regional Banking $ 3,694 $ 3,837 $ 4,046 $ 4,112 $ 4,032 $ 2,876 $ 3,349 $ 3,837 2. C&I - Sponsor Finance 911 898 832 845 811 795 766 898 3. CRE Owner Occupied 1,232 1,237 1,335 1,369 1,440 1,1
Slide 28: Non-GAAP
Non-GAAP ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE 3Q25 4Q25 1Q26 2Q26 3Q26 9/30/24 YTD 9/30/25 YTD 9/30/26 YTD (Dollars and Shares Outstanding in Thousands, Except Per Share Amounts) Net Income Available to Common Stockholders (GAAP) $ 56,297 $ 56,596 $ 27,687 $ 43,511 $ 67,847 $ 13
Slide 29: Non-GAAP
Non-GAAP PRE-TAX, PRE-PROVISION ("PTPP") EARNINGS, AS ADJUSTED 3Q25 4Q25 1Q26 2Q26 3Q26 9/30/24 YTD 9/30/25 YTD 9/30/26 YTD (Dollars in Thousands, Except Per Share Amounts) Net Interest Income (GAAP) $ 133,665 $ 139,064 $ 151,303 $ 158,941 $ 161,068 $ 386,744 $ 396,949 $ 471,312 Noninterest Income (
Slide 30: Non-GAAP
Non-GAAP NET INTEREST SPREAD AND MARGIN (FTE ADJUSTED) 3Q25 4Q25 1Q26 2Q26 3Q26 9/30/24 YTD 9/30/25 YTD 9/30/26 YTD (Dollars in Thousands) Interest Income (GAAP) $ 235,095 $ 237,444 $ 248,569 $ 260,839 $ 263,947 $ 713,364 $ 687,348 $ 773,355 Fully Taxable Equivalent ("FTE") Adjustment 6,209 6,185 6,
Slide 31: Non-GAAP
Non-GAAP EFFICIENCY RATIO 3Q25 4Q25 1Q26 2Q26 3Q26 3Q24 YTD 3Q25 YTD 3Q26 YTD (Dollars in Thousands) Noninterest Expense (GAAP) $ 96,561 $ 99,522 $ 125,145 $ 115,347 $ 116,254 $ 282,977 $ 283,061 $ 356,746 Less: Intangible Asset Amortization (1,499) (1,498) (2,302) (2,706) (2,652) (5,500) (4,530) (7
Slide 32: Non-GAAP
Non-GAAP TANGIBLE COMMON EQUITY RATIO 3Q24 3Q25 4Q25 1Q26 2Q26 3Q26 Tangible Common Equity Ratio (dollars in thousands) Total Stockholders' Equity (GAAP) $ 2,302,373 $ 2,412,402 $ 2,466,667 $ 2,672,565 $ 2,697,177 $ 2,636,381 Less: Preferred Stock (25,125) (25,125) (25,125) (25,125) (25,125) (25,125
Slide 33: Non-GAAP
Non-GAAP RETURN ON TANGIBLE COMMON EQUITY 2015 2016 2017 2018 2019 2020 2021 Return on Tangible Common Equity (dollars in thousands) Total Average Stockholders' Equity (GAAP) $ 753,724 $ 884,664 $ 1,110,524 $ 1,343,861 $ 1,569,615 $ 1,825,135 $ 1,866,632 Less: Average Preferred Stock (125) (125) (12
Slide 34: Non-GAAP
Non-GAAP ADJUSTED RETURNS ON AVERAGE ASSETS, AVERAGE STOCKHOLDERS' EQUITY, AND TANGIBLE COMMON EQUITY 1Q26 2Q26 3Q26 9/30/26 YTD Return on Average Assets (GAAP) Reported (GAAP) 0.55% 0.83% 1.30% 0.90% Effect of net loss on mortgage loans reclassified to held for sale 0.59% 0.00% 0.00% 0.18% Effect o